Posted on July 30, 2018
By Seeking Alphaa,Cat Financial reported second-quarter 2018 revenues of $723 million, an increase of $47 million, or 7 percent, compared with the second quarter of 2017. Second-quarter 2018 profit was $71 million, a $43 million, or 38 percent, decrease from the second quarter of 2017.
The increase in revenues was due to a $35 million favorable impact from higher average financing rates and a $26 million favorable impact from higher average earning assets, partially offset by a $14 million unfavorable impact from lower lending activity with Caterpillar (CAT).
Profit before income taxes was $100 million for the second quarter of 2018, compared with $164 million for the second quarter of 2017. The decrease was primarily due to an $86 million increase in provision for credit losses, partially offset by a $12 million increase in net yield on average earning assets and a $12 million favorable impact from higher average earning assets.
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